On Friday, HSBC upgraded its price target on shares of Lufax Holding Ltd (NYSE:LU), a leading Chinese personal financial services platform, from $4.00 to $5.20 while maintaining a Buy rating on the stock. The adjustment came after Lufax announced a special dividend of $2.42 per American Depositary Share (ADS), surpassing market expectations.
The financial services company, which is expected to provide more details in an analyst briefing scheduled for 9 am Hong Kong Time on March 22, has captured attention with its dividend announcement.
HSBC anticipates that the briefing will address several key topics including Ping An Insurance's decision on whether to opt for an all-scrip dividend, the timing of an increase in new loan sales, the outlook for impairment costs following the transition to a fully guaranteed model, and potential additional cost-saving measures.
HSBC's revised price target reflects the incorporation of Lufax's fourth-quarter results and its guidance for 2024. Additionally, HSBC has introduced its financial estimates for the year 2026 into the valuation model, which contributed to the decision to raise the target price.
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